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Below the Quote on market on the occasion of Muhurat Trading by Mr Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life

“On the auspicious occasion of Muhurat Trading, Indian equity markets enter the new Samvat with optimism, resilience and the promise of long-term wealth creation. While the domestic equity landscape continues to navigate global uncertainties, geopolitical developments, evolving monetary policy expectations and intermittent volatility, India's structural growth story remains intact, supported by robust domestic consumption, sustained infrastructure spending, healthy corporate balance sheets and a resilient financial system.

From a market perspective, we believe the outlook for the coming Samvat remains constructive, albeit with expectations of moderate and more selective returns. Earnings growth, rather than valuation expansion, is likely to be the primary driver of market performance going forward. Given the underperformance of large caps driven by FII outflows and the strong growth in midcaps, we expect the large- and midcap segments to do well when FIIs return at some point in time. FIIs can invest across a wide variety of industries, in the required size and scale, in this segment. 

We expect market leadership to increasingly favour companies with strong fundamentals, consistent cash-flow generation, healthy balance sheets and sustainable earnings visibility. Banking and financial services, Healthcare, select industrials, Infrastructure and select consumption-oriented businesses remain key sectors to watch, subject to valuations and earnings prospects.

We anticipate intermittent bouts of volatility, making disciplined asset allocation, staggered investments and a long-term investment horizon particularly important. Investors should use market corrections as opportunities to accumulate quality businesses rather than react to short-term sentiment.

As we step into the new Samvat, our view is that India remains well-positioned to deliver sustainable long-term growth. The focus should remain on quality, earnings resilience and prudent investing. We wish investors a prosperous Samvat filled with wealth creation and financial success.”

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